South Korea's Hynix Semiconductor announced it will shut its US plant because of a global slump in the price of memory chips.

The firm said in a statement it will stop production by September at its plant in Eugene, Oregon, which makes 200-mm wafers.

The plant opened in 1998 and employs 1,200 people including 150 Koreans who will be found jobs at home, said spokeswoman Seong-Ae Park. She said Hynix would try to help US employees find other jobs.

Hynix said it is considering selling the plant to another semiconductor manufacturer, among other options.

The closure is part of efforts to shift production to more modern 300-mm wafers. Last year Hynix announced plans to upgrade its plant at Wuxi in China.

The firm said it is also reviewing operations at 200-mm wafer plants at Icheon and Cheongju in South Korea but no decisions had been taken.

Park said average prices of memory products had dropped more than 50 percent due to oversupply and weaker than expected demand. "We will try to look at other options to improve efficiency."

Source: AFP Asian Edition